Second Meeting of Iran Flourishing Project on How Iran Will Be Rebuilt by Experts
The Iran Flourishing Project, attended by specialists in various fields, has held two meetings so far, which were broadcast through the “Manoto” satellite network on Thursday and Friday.
Prince Reza Pahlavi views the Iran Flourishing Project as a roadmap for rebuilding Iran after the end of the Islamic Republic, which has been launched with the goal of restoring development and prosperity throughout Iran, and this project is also a commitment to the Iranian nation.
Specialists in this meeting announced a summary of their plans in the fields of economics, trade, markets, and education for rebuilding Iran during the transition period from the Islamic Republic and the period of stability of the new government. “Kamran Khansari Nia,” Deputy Director of the Nofoday Organization, stated at this ceremony regarding cooperation of Iranians outside the country in Nofoday: “Although we live far from Iran, every day we wake up thinking about Iran and Iranians. The question has arisen that if the Islamic Republic goes, who will replace it?”
He continued his remarks, referring to a part of Ferdowsi’s Shahnameh that addresses the overthrow of Zahhak, saying: “If Zahhak leaves, Fereidoun will come; but Fereidoun will not come alone, but will come to Iran with specialists and researchers.”
“Mohammad Reza Jahanpour,” an economist and university professor, also spoke at this meeting about Iran’s economic situation: “Iran’s gross domestic product last year was approximately 400 billion dollars, about 25 percent of which depends on government spending. The government’s tax revenues have also increased in recent years, as oil and gas exports have decreased due to sanctions and the government’s dependence on tax revenues has increased from 23 percent in 2021 and 2022 to about 46 percent. At the same time, transfer payments, consumer subsidies, and other government services have also decreased.”
He also added, referring to the problems in Iran’s economy: “Despite the problems that exist in Iran’s economy, within 100 to 180 days after the fall of the Islamic Republic, fundamental changes cannot be made in the economy, but a set of solutions can be implemented to improve the economy. Maintaining public trust, continuity of services and government functions, dialogue with the international community to reduce the burden of international sanctions, are part of short-term solutions for the transition period. Given that in this period, the government has changed and the Islamic Republic’s aggressive foreign policy has ended and there is no burden on the private sector, this transformation will bring economic openings for Iran.”
He also pointed out regarding financing: “In the transition period, the dissolution of harmful and inefficient institutions of the Islamic Republic and placing some state and quasi-state enterprises under the supervision of a temporary administration will lead to cost reduction through budget simplification.”
Jahanpour also emphasized tax reforms and continued: “Currently, value-added tax is creating a heavy burden on people and unfavorable taxes have been imposed on people’s assets. Inflation has driven up asset prices without adding to the value of the wealth of asset owners, but taxes on nominal asset prices have increased. In such circumstances, these types of taxes should be eliminated to prevent further economic pressure on people, especially the middle-income and lower-middle-income classes. Also, by creating tax incentives, measures can be taken to attract foreign investment. Furthermore, by making changes to laws, Iranian businesses that are operating in neighboring countries can be brought back to the country.”
“Siamak Javadi,” Professor of Finance at the University of Texas, also explained at this meeting the necessity of Iran joining the Financial Action Task Force. He said: “Corruption exists in many countries of the world, but the type of corruption in Iran is different, and corruption in Iran has become completely systematic, very widespread, and pervasive. Based on World Bank indicators, Iran is one of the most corrupt countries in the world. One of the results of this widespread corruption can be seen in Iran’s banking network. Currently, the central bank has given many loans that have not yet been repaid to this bank, and this bank has suffered significant losses. The lack of independence of the central bank is one of the most important problems in Iran’s financial system, as this bank has effectively become a government interest-free loan fund.”
Referring to Iran’s non-membership in the Financial Action Task Force (FATF), he added: “Iran is on this group’s blacklist. Although there was a very short period during President Rouhani’s presidency when the Islamic Republic negotiated with this group and made promises, Iran was then placed on the group’s gray list, but after failing to fulfill the promises, it was placed on the blacklist again. In fact, Iran is one of three countries on this list. Iran’s non-membership in this group is a very important indicator showing that the international community and economic actors do not consider Iran as a normal economic country. Therefore, it is necessary for Iran to join the Financial Action Task Force to overcome the economic crisis.”
(The Financial Action Task Force (FATF) is an intergovernmental organization established in 1989 at the initiative of the Group of Seven, with a view to development policies to combat money laundering, and in 2001 joined the campaign against terrorist financing. The secretariat of this organization is located at the headquarters of the Organization for Economic Cooperation and Development in Paris, and Iran is on the blacklist of this organization.)
Mr. Javadi also spoke about the current state of the stock market in Iran: “The valuation of Iran’s stock market is administrative, and we are witnessing that Iran’s market value is administratively and artificially high. We should ask ourselves why a country that has been under sanctions for more than 20 years and has no real investment opportunities and whose companies are unprofitable can have an advanced stock market? Where does this valuation in the stock market come from?”
Regarding the information misuse by managers in the stock market, most of whom were members of the IRGC, he added: “Managers in the stock market misuse information from their companies and make financial transfers, while the people do not have access to this information, and when they buy shares of these companies in the stock market, they lose. For example, in the past two years, Iran Khodro announced in the month of Khordad that the government did not give preferential currency to this company. Citizens who had bought shares of this company in the stock market lost money. Some time later, it became clear that three weeks before this announcement, the people involved had known about this matter in their circles.”
Siamak Javadi, while requesting the dissolution of all institutions and programs related to Islamic economics, emphasized: “The Supreme Council of Iran’s Stock Exchange is an organization that applies Islamic thoughts to the mechanisms of Iran’s financial markets and should be dissolved for at least 3 months and, if necessary, for 6 months, and this action should be taken with complete transparency and through clear and effective communications with people and market activists. As for Islamic banking, there is no reason for concern, because after the fall of the Islamic Republic, Islamic banking will also end.”
“Ahmad Eshghiar,” a business strategy specialist and senior data analyst, also spoke at this meeting about the continuation of the activities of companies under holding companies. In his explanations on this matter, while referring to the experience of Eastern European countries and Russia after the collapse of the communist system, he emphasized that avoiding the repetition of the failed privatization experience that led to capital concentration and loss of people’s shares and the creation of oligarchy in Russia is very necessary.
He also, while presenting a proposal to dissolve large holdings, said: “We do not need these holdings. Holdings can be dissolved, but many of the companies under these holdings have essential and important goods or provide important services that have economic value. These companies will continue their activities. One of the basic principles is that we do not want to unnecessarily damage the economy. There is no reason why we should harm the activities of these companies as long as they are performing useful activities. Also, privatizations will be carried out under the supervision of the Ministry of Economy, and competent middle managers in the body of the Islamic Republic will continue their work the day after the fall.
My suggestion is that oil, gas, and petrochemical companies should also be under government control in the short term, and privatization of these companies should be avoided during a certain period of time; because the oil, gas, and petrochemical industries play a key role in Iran’s economy, and in a political transition period, these very important companies cannot be sold at a cheap price.”
“Nejat Bahrami,” a researcher and journalist who has taught and managed in Iran’s education system for over two decades, also began his remarks at this meeting by emphasizing the necessity of de-ideologization of education in Iran.
He said: “Preserving the overall administrative and employment structure, efforts to ensure the continuation of school activities and continuation of teacher salaries, eliminating the policy of gender separation in schools, making headscarves optional for students and teachers, training teachers for integrated classes, eliminating some books and courses from educational content, immediately changing cultural programs and extracurricular activities, eliminating manifestations of the Islamic Republic’s ideology from schools and educational environments, providing services such as free transportation, especially in rural areas, and free food distribution in rural areas and less privileged provinces, are among the most important priorities of education in the first six months after the fall of the Islamic Republic.”
Finally, “Payam Alipour,” a Ph.D. in health economics and financial analyst, spoke about the necessity of reforming the retirement system. In this regard, he announced a long-term plan for savings and defined participation called FDT, which is for those who have participated in the FDT system throughout their lives and have saved and invested in this system according to their income, and this investment can also be converted to a pension at the time of retirement.
He also emphasized: “If the amount of individual participation during their employment period is not such that it creates income above the poverty line at the time of retirement, that person or eligible persons will receive regular anti-poverty assistance.”
